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Politics : Ask Michael Burke

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To: jebj who wrote (57485)	4/26/1999 10:21:00 PM
From: Greg Jung	Read Replies (1) of 132070

Jebj, a few comments: " and only note that it has been being said about the net stocks for - - how many years now?" Not many. It was really only last fall that .com fever truly struck in manic proportion. Before that, maybe a good year of appreciation of some of the more understandable speculations. EBAY and Geocities mark the beginning of the truly absurd. See PSIX chart for many months of <$6 (because, you see, the company actually loses money) for how truly should suffer even if involved in a successful speculation. Before the net, it was y2k fever. I suppose every year is designated for a different mania for stocks to be pushed. Now, as for stocks going up and down and eventually being right, I don't suppose you should convince the holder of Zitl that bought at $20 that he'll eventually be right. Or of MLTN. Or PRST. If you study these examples a little (available through posts on SI) you'll find that a hope and a prayer without a viable business just doesn't survive. OK, as to my final point, is to point out that even those that are way ahead on the I'nut can lose it all in a flash. Most have decided that the paper they hold is actually worth a tangible amount so that next week if it sells for 1/2 then they can make a lot more money by buying it on the cheap and then selling when it goes up (review your own post to reveal the belief that rebound will always occur). I would guess there are a lot of investors modestly margined that would actually max out margin when it "felt like" a bottom and the stocks then proceeded to lose another 50% - at which point the account becomes without value. I.E. if last monday wasn't followed by the immediate rebound in internet issues, forced liquidations could have dropped the bottom.

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